EnQuest expanding Southeast Asian footprint to Indonesia

London Stock Exchange-listed energy player EnQuest has been awarded two production sharing contract (PSC) blocks in Indonesia’s West Papua province by the country’s Ministry of Energy and Minerals.

According to the UK player, the Gaea and Gaea II blocks won as part of the second round of the Indonesia Petroleum Bidding Round (IPBR) 2024 present an unrisked resource potential comprising several trillion standard cubic feet for EnQuest and its joint venture partners.

Subject to the execution of the PSC, EnQuest stands to become the PSC operator with a 40% working interest. Its partners are the Tangguh Joint Venture (40% working interest), comprising BP Exploration Indonesia Limited, MI Berau (INPEX–Mitsubishi JV), CNOOC Southeast Asia Limited, ENEOS Xplora, Indonesia Natural Gas Resources Muturi, and KG Wiriagar Petroleum, and PT Agra Energi Indonesia (20% working interest). 

Marking EnQuest’s entry into Indonesia, a country the company believes offers a broad range of growth opportunities that span the full upstream lifecycle, the deal further expands the UK firm’s Southeast Asian footprint, adding to what it says is growing momentum in the region. 

In line with this, the company recently received authorization to annex the non-associated gas and condensate at the Seligi field into the PM8E PSC offshore Malaysia. It also signed a deal for the acquisition of Harbour Energy’s Vietnam business.

Additionally, the UK player is in talks over a potential business combination with Serica Energy, which has the opportunity to create a bigger combined company with a total market capitalization of nearly $1 billion.